A potential cause of stagflation is:
A) Agricultural surpluses
B) Declining productivity
C) Improving labor productivity
D) A rise in the value of the dollar

Question

Quizplus · Accepted Answer

Stagflation is a phenomenon where there is a combination of high inflation and low economic growth. One potential cause of stagflation is a decline in productivity, which can lead to an increase in production costs, reduced investment, and lower economic growth. This can also lead to a situation where excessive demand results in rising prices, further fueling inflation.

A Potential Cause of Stagflation Is